Income Tax Act (Cap. 123), article 15

15. (1) For the purposes of this article investment services company shall mean a company which on the 1st October, 2003 held an investment services licence issued under article 6 of t he Investment Services Act , or a company which, on the 1st October, 2003 was recognised by the relevant competent authority for the purposes of article 9A of that said Act, and whose activities s olely comprise the provision of management, administration, safekeeping, or investment advice to collective investment sche mes as defined in the aforesaid Act. (2) For the purposes of ascertaining the total income of an investment services company fo r any year up to the year immediately preceding the year o f assessment commencing on such date that the Minister may by notice in the Gazette appoint †, the amounts specified in paragraphs ( a) to (e) shall, at the company’s option, be allowed as deductions in addition to or as a replace ment for, as the case may be, the amo unts allowed under article 14(1 ) and shall be subject to the conditions stipulated in that artic le. For this purpose: (a) rental, energy costs, building maintenance, building insurance and other buildi ng occupancy costs incurred in the period from the year preceding the first year of assessment in which the investment services company first becomes liable to tax under this Act up to and including the year preceding the tenth year of assessment shall be allowed as an additional one hundred per cent of such expenditure; (b) a one hundred per cent deduction shall replace the deductions provided for under article 14(1)( f) and ( j) in respect of expenditure which is incurred in the period commencing from the year preceding the first year of assessment in which the investment services company first becomes liable to tax under the provisions of this Act up to and including the year preceding the fifth year of assessment and, in addition, expenditure in respect of office premises shall be eligible for such deduction as if the said premises were industrial buildings; (c) the amounts invested by an investment services company for its own account in a collective investment scheme managed by that company shall be allowed as a deduction if such investment is made during the period commencing from the year preceding the first year of assessment in which the investment services company first becomes liable to tax under the *Applicable from Year of Assessment 2025. Vide Regulation 8 (2) (a) of Act XIII of 2024. † 1st January, 2011 - see the Notice of Appointed Date (Income Tax Act) Order - S.L.123.125 104 CAP. 123.] INCOME TAX provisions of this Act up to and including the year preceding the fifth year of assessment: P r o v i d e d t h a t s u c h f u n d s s o i n v e s t e d a r e n o t disinvested from such coll ective investment scheme within two years of the making of the said investment: Provided further that this additional deduction shall not affect the amount which is to be taken as the cost of acquisition of such investment for the purposes of any other provision of this Act, and also provided that such deductions shall not be carried forward as part of a loss to be set off against the company’s liability in respect of a capital gain arising on the disposal of its investments in the coll ective investment scheme; (d) remuneration paid by an investment services company t o i t s e m p l o y e e s w h o a r e r e s i d e n t i n M a l t a s h a l l b e allowed as an additional one hundred per cent of that remuneration if such expenditure is incurred during the period commencing from the year preceding the year of assessment in which the investment services company first becomes liable to tax under the provisions of this Act up to and including the year preceding the tenth year of assessment; (e) there shall be allowed as a deduction any other expenses and outgoings incurred by the investment services company wholly and exclusively for the purposes of carrying on its business and which would otherwise not have been allowed as a deduction under the provisions of article 14(1). (3) Where an investment services company incurs expenditure before it begins to carry on its business, and the expenditure - (a) is incurred not more than five years before that time; and (b) is not deductible in ascertaining the total income of the investment services company, but would have been so deductible under article 1 4(1) or under sub-article (2)( e) had it been incurre d after that time, such expenditure shall be treated as incurred on the day on whi ch the business is first carried on by the investment services com pany, and of sub-article (2)( a) to (d) shall apply in respect of such expenditure. (4) The additional deductions specified in sub-article (2) represent the maximum deductions allowed for the purposes of th at sub-article, and an investment services company need not claim the full amount of such maximum deductions in respect of any year o f assessment. (5) The additional deductions provided for in this article shall not be taken into account in determining the amount of loss, if any, available for surrender under the provisions of articles 16 to 22 (group relief provisions) of this Act. INCOME TAX [CAP. 123. 105 Companies author- ised to act as insur- ance managers. Added by: XVII. 1998.70. Amended by: II. 2004.11. Cap. 403.